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CMA- All of the following are affected when merchandise is purchased on credit except:

 

 

 

a. total current assets.

 

b. net working capital.

 

c. total current liabilities.

 

d. current ratio.

 

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Question added by mohamed Hakim CMA CPA Candidate , Accounting Manager , Andersen saudi arabia
Date Posted: 2015/05/25
FITAH MOHAMED
by FITAH MOHAMED , Financial Manager , FUEL AND ENERGY CO for transportion petroleum materials

b.>>>>>>>>>>>>net working capital.

Deleted user
by Deleted user

Answer is

B.Net working capital

Shazia Anees
by Shazia Anees , Assistant Manager Finance , Arham Trading Company

net working capital=================

Mohamed Abdelrahman
by Mohamed Abdelrahman , Senior Accountant , Msafat Company

net working capital.

.............................

Muhammad Ramzan Tufail  ACCA
by Muhammad Ramzan Tufail ACCA , Assistant Finance Manager , Eltizam Asset Management Group

Net Working Capital....

 

 

Thank you

PRADEEP VELAYUDHAN
by PRADEEP VELAYUDHAN , Chief Accountant , Super Group

total current assets------------------------------------

ايمن محمد عاطف محمد
by ايمن محمد عاطف محمد , Director of the control and regulation unit , ACOLID

Correct answer b. ------------------------

حسين محمد ياسين
by حسين محمد ياسين , Finance Manager , مؤسسة عبد الماجد محمد العمر للمقاولات العامة

B >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>><<<<<<<<<<<<<<<<<

Muhammad  Waqas
by Muhammad Waqas , Manager , Pwc - Pakistan

All of the following are affected when merchandise is purchased on credit except option B. 

Ahmed Abdi Mahad
by Ahmed Abdi Mahad , Director of Internal Auditing Directorate , Jigjiga University

Net working capital = Current assets - current liability

Thus, assuming that all other things are being constant, purchase of merchandise on account does not affect the net working capital because the same amount is increased in the current asset and the current liability.

So. choice B, net working capital, is the right answer

Ahmed kandil
by Ahmed kandil , Cost Controller , Battour Holding Cpompany

D is the correct answer Thank you

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